If we express our knowledge in sentences, we will find that these sentences to some extent are linked by logical rules. We ask whether the structure logic imposes on our knowledge restricts what we forget and what we remember. The model is a two period S5-style modal logic. In this logic we...

Using a unique newly constructed data set on Israeli IPO firms in the 1990s, we study costs and benefits of universal banking. The post-issue accounting profitability of firms underwritten by bank affiliated underwriters that were also borrowers from the same bank in the IPO year, is...

The paper provides a general equilibrium analysis in which individual decisions determine the aggregate divorce rate and are influenced by it. Reinforcement is caused by search frictions and a meeting technology whereby remarriage is more likely if the divorce rate is higher, implying multiple...

I consider two seemingly unrelated puzzles; 1. Why is relative performance evaluation (RPE) used less in CEo compensation than agency theory suggests? 2. Why is sometimes, e.g., for fund managers, a mediocre performance more highly rewarded than excellence? I consider a simple tournament model,...

We develop a model of common agency with complete information and general preferences with non-transferable utility, and prove that the principals'Nash equilibrium in truthful strategies implements an efficient action. We apply this theory to construct a positive model of public finance, where...